Calculate the simple interest on a $100,000 investment at an interest rate of 12 percent a year after 6 months.(1 point)
Responses
$72,000
$72,000
$7,200,000
$7,200,000
$6,000
$6,000
$600,000
To calculate the simple interest, we can use the formula:
Simple Interest = Principal × Interest Rate × Time
Here, the principal is $100,000, the interest rate is 12% (or 0.12 in decimal form), and the time is 6 months (or 0.5 years).
Therefore, the simple interest can be calculated as:
Simple Interest = $100,000 × 0.12 × 0.5 = $6,000
So, the simple interest on a $100,000 investment at an interest rate of 12% a year after 6 months is $6,000. Answer: $6,000